U.S. jobless claims fall, point to labor market strength
The number of Americans filing for unemployment benefits unexpectedly fell last week to near a 43-year low, an indication of firmness in the labor market which may support an interest rate increase by the U.S. Federal Reserve this year.
Initial claims for state unemployment benefits declined 5,000 to a seasonally adjusted 249,000 for the week ended Oct. 1, the Labor Department said on Thursday.
First-time claims were the lowest since April, when initial applications for aid were at levels not seen since November 1973. It's the 83rd consecutive week claims have remained below 300,000, which is seen as indicative of a strong labor market.
Thursday's claims report also showed continuing claims, which tallies how many people are still receiving benefits after an initial week of aid, fell 6,000 to 2.058 million in the week ended Sept. 24. The four-week average fell 21,000 to 2.095 million. Those levels were last seen in 2000.
Upbeat U.S. data lift dollar index to two-month high
The dollar rose against a basket of currencies on Thursday to its strongest level in two months as encouraging data on U.S. jobs reinforced the view the Federal Reserve would raise interest rates at the end of the year.
Sterling on the other hand fell to a 31-year low versus the greenback on renewed anxiety about the repercussion from Britain's "hard" exit from the European Union.
The dollar index was last up 0.55 percent at 96.658 after touching its highest level since late July. .DXY
Flash Crash of the Pound Baffles Traders With Algorithms Being Blamed
The pound plunged as much as 6.1 percent against the dollar, the biggest decline since the day the U.K.’s Brexit referendum result was announced, in a move that traders struggled to immediately explain.
Sterling sank as low as $1.1841, according to data compiled by Bloomberg, the lowest since March 1985. The pound quickly pared the drop, trading 1.1 percent weaker at $1.2472 at 9:26 a.m. in Tokyo. Traders questioned whether computer-driven orders had triggered the plunge, exacerbated by a lack of liquidity in early Asian hours, while some saw the possibility of human error, or a so-called “fat finger.” Others pointed to a Financial Times article citing French President Francois Hollande as saying the U.K. must suffer the consequences of leaving the European Union.
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Deutsche Bank in informal talks about raising capital: Bloomberg
Deutsche Bank AG (DBKGn.DE) is in informal talks with securities firms to explore options including raising capital should mounting legal bills require it, Bloomberg reported on Thursday.
Senior advisers at top Wall Street firms are speaking to representatives of Deutsche Bank about ideas including a share sale and asset disposals, Bloomberg reported, citing people familiar with the discussions. (bloom.bg/2dyvmuW)
The banks are offering to help underwrite a stock sale to raise about 5 billion euros ($5.6 billion), the maximum amount in discounted shares Deutsche Bank can sell without needing shareholder approval, Bloomberg said.
A spokeswoman for Deutsche Bank in New York declined to comment.
Oil hits four-month highs as OPEC keeps talks of cuts in focus
Oil rose more than 1 percent to four-month highs on Thursday, spurred by another informal OPEC meeting on output cuts and plunging U.S. crude inventories, with some saying the market has overshot itself with a near 15-percent gain in seven sessions.
Saudi, Iranian and Iraqi energy ministers will be among key OPEC representatives to meet non-OPEC member Russia on the sidelines of an energy conference next week in Istanbul, OPEC sources said.
U.S. West Texas Intermediate crude CLc1 closed up 61 cents, or 1.2 percent, at $50.44. It was WTI's first settlement above $50 since June 24.
Reference: Reuters, CNBC, Bloomberg
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